Description: Overage Charges refer to additional costs incurred when the usage of a service exceeds the limits set in a contract. In the context of FinOps and cloud cost optimization, these charges are particularly relevant as organizations often contract cloud services with plans that include usage limits, such as storage, bandwidth, or processing capacity. When these limits are exceeded, cloud service providers apply additional fees, which can lead to unexpected costs and the need for more careful resource management. Understanding these charges is crucial for organizations looking to optimize their cloud spending, as it allows them to identify usage patterns and adjust consumption strategies. Furthermore, constant monitoring of resource usage can help prevent these charges, enabling organizations to stay within agreed limits and avoid surprises in their bills. In summary, overage charges are a fundamental aspect of financial management in the cloud, requiring attention and planning to ensure costs remain under control.
